Printer friendly version Print this page

Historical Text Archive © 1990 - 2014
Printer friendly version of: http://www.historicaltextarchive.com/sections.php?action=read&artid=623


Rise of the National Market Economy, 1815-30

Change from a Staple-Exporting to a National Market Economy

Characteristics of a staple-exporting economy Characteristics of a national market economy
1. export of staples such as tobacco, grain 1. specialization in agriculture
2. income from carrying trade 2. national and international market system
3. subsistence agriculture 3. use of money and credit
4. dependence on foreign manufactures 4. domestic manufacturing
5. dependence on foreign capital 5. rapid economic growth
6. static and/or limited economy 6. potential growth of domestic investment capital

Factor Influencing the Shift from the Staple-Exporting to a National Market Economy after 1815

1. High profits from the Napoleonic Wars (including War of 1812)
2. Internal expansion to the Mississippi River
3. Development of commercial agriculture
4. Revolution in transportation creating cheaper and faster modes
5. Public policy decisions at the state and national levels to foster enterprise
6. Nationalism of the Republican (Jefferson) Party
7. Judicial nationalism which created the legal requirements for a national market

Effects

1. Boom-Bust cycles
2. Increased sectionalism
3. Psychological dislocations
4. Economic expansion
5. Growth of a two party system
6. Creation of conditions which allowed the later Industrial Revolution